Provincial government wants to protect jobs and support economy

Richard Liebrecht, Edmonton SUN
February 6, 2010

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Minimum wage earners can forget an annual pay raise this year — the province has frozen the rate for 2010 and has scrapped its policy of guaranteed annual increases.

“This decision reflects what government feels will both protect jobs during these uncertain economic times and support the economy,” said Thomas Lukaszuk, minister of employment and immigration on Friday.

But the Edmonton Social Planning Council is crying foul, suggesting an increase would be chicken scratch, even in the face of a recession.

“According to Statistics Canada, the average weekly earnings index increased only 1.4% in the most recent 12- month period. This would have translated into a 12 cent-per-hour increase in the minimum wage, which is certainly affordable even in today’s economic climate,” said executive director Susan Morrissey.

Alberta’s minimum wage will remain at $8.80 per hour through 2010. It was increased by 40 cents in 2009.

The minimum wage across Canada ranges from $8 per hour in British Columbia to $9.50 per hour in Ontario.

Lukaszuk said he considered studies from other provinces and saw that a minimum wage increase led to layoffs.

“Small employers such as restaurants are most vulnerable” to the recession because of consumer belt-tightening, he said.

The minister is set to create an all-party legislature committee to find a new policy for adjusting the minimum wage.

“I want to find out if there is a way of calculating minimum wage that is more predictable, and I’m wondering if one-size-fits-all is the right approach,” said Lukaszuk.

He said many, but not all, minimum-wage earners top up their wages with tips.

More details on the committee’s work will emerge in the coming weeks.

The minimum wage rate has been increased every year since 2007. Prior to that, changes to the wage level were irregular.

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